Deford v. MacWatty

Citations

• 82 Md. 168
• 33 A. 488
• 1895 Md. LEXIS 112

Syllabus

<p>Receivers' Sale — Insufficient Advertisement of the Property to be Sold — Information to Purchasers — Terms of Sale — Exceptions to Ratification.</p> <p>If after a Receiver’s sale has been made and reported to the Court for ratification, it is shown that the terms of sale prescribed by the order are of such a character as not to put the property fairly on the market, and in consequence thereof, it has sold for a depreciated price, thereby affecting injuriously the interests of all parties concerned, the Court will set aside such sale and order a resale on more favorable terms.</p> <p>Such a sale will not be ratified, merely because the parties in interest failed to object in advance to the terms of sale prescribed by the order or decree.</p> <p>When, owing to the neglect of the Receiver to give to purchasers full information as to the character of the property offered for sale, it sells tar below its real value, the sale will be rejected.</p> <p>When a going concern is sold by a Receiver, the debts due to it should not be included as a part of the assets, but these should be collected by the Receiver.</p> <p>After a manufacturing establishment had been conducted prosperously by a Receiver for eight years, an order was passed upon his application directing him to sell at auction, as an entirety, all of the assets of the concern (except cash) including the good will, machines, merchandise and debts due to the concern. The successful prosecution of the business depended upon the right to use certain patents which were owned by a corporation of which the Receiver was President. No information was given in the advertisement as to whether the sale of the assets and good will of the concern carried this right or not. The concern had earned an annual net profit of $10,000 (after paying commissions of $5,000 a year to the Receiver); the stock of merchandise on hand was worth over $50,000; there were debts due to the concern amounting to $35,000 ; and there was a cash surp